Create a Tax Records Checklist as a starting point for establishing your Everyday file. Your Everyday File prepares you beautifully for tax time. It give your tax support records a temporary home. It could be as simple as five categories, using binder clips to organize the internal subjects. If you prefer more structure, add subject file folders. Below is a list of the most common expenses and statements to watch out for.

Everyday

Tips

Paystubs

Unreimbursed Employee expenses

Job Hunting expense

Educational expenses

Educator expenses

Adoption expense records

Wealth

Alimony Paid or Received

Child Support Paid or Received

Bank statements

Credit card statements

Investment statements

Investment Buy/Sell Confirmations*

Retirement statements

Health Savings Account statements

Insurance statements

Wellness

Medical and Dental expenses

Child and Dependent Care expenses

Charitable contributions and Volunteer records

Home

Mortgage Interest statements

Property Taxes statements

Home improvement expenses*

Casualty, Disaster, and Theft

Moving Expenses (if job related)

Settlement/Closing Statement* (if new homeowner)

Fun (interests)

Gambling or Lottery records

Business

Business Use of Home Records (could be utilities and maintenance records)

Business Use of Car (mileage logs and maintenance records)

Business Travel expenses

Business Entertainment expenses

Business Bank Account statements

Business Expenses

Self Employment records

IRS publication 552 - Record-keeping for the Individual is the official go to for getting a good idea about what type of records you need to keep for the deductions you are taking. It now includes a section dedicated to electronic record-keeping. Frankly I still find it vague and a little confusing. But it is what it is. You have to trust your gut when it comes to how you deal with your digital info.

There is one statement that really caught my attention.

"One of your basic records is proof of payment. You should keep these records to support certain amounts shown on your tax return. Proof of payment alone is not proof that the item claimed on your return is allowable. You also should keep other documents that will help prove that the item is allowable.”

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"We have ambition backwards. Getting clear on how you want to feel in your life + work is more important than setting goals. It’s the most potent form of clarity that you can have, and it’s what leads to true fulfillment." ~Danielle LaPorte

Hi. I'm Cathy Anderson. I created the JOYS line of paper organizing tools. I did it because I knew simplifying, getting organized and taking care of responsibilities would help me find freedom and peace-of-mind. I also had a hunch it would make me happier. And it has. I'm here to help you make peace with your papers, so you can enjoy all the best life has to offer. JOYS is an for-profit¢ adventure in entrepreneurship {my shop}, organizing papers {my blog} and taking control of my life {my story}.